Posted by phil fernandez on December 15, 1999 at 07:22:36:
If the loan is not in default there would be no reason for the bank to participate in a short sale or to discount the note. With little equity if you are in a good rental market you might want to work out a lease option with some rent credits for yourself. Also taking the house subject to the existing mortgage might work.
Can I Help? - Posted by Kip
Posted by Kip on December 14, 1999 at 23:26:09:
I have a friend is trying to sell his house in Victorville and is building another in Apple Valley, CA. He ows 119k and FMV is not much more than that. Values in this area have declined since about 1992 and there have been lots and lots of foreclosures. Recently real estate has stabilized here and is now starting to improve. The house is a 4bd 2ba about 8 years old. Very nice, in a good neighborhood. Is there any way I could help him by aquiring the house creativly? Mabe a short sale or buying the note from the lender at a discount or even a lease option? I have a rental near by so I know the area well. Do I need to find something with more equity for investing? By now you can tell I am a beginner and am dying to get my feet wet in CRE. Feel free to point out any missing info, it will help me know what to ask next time my friend and I talk.
Thanks in advance,
Frank Kip
Re: Can I Help? - Posted by Glenn
Posted by Glenn on December 16, 1999 at 09:50:15:
I would think this is a good candidate for a land trust. Place yourself in the middle for a co-beneficiary interest, with yourself getting a piece of any appreciation at the time it is sold in the future, after the resident co-beneficiary has sufficient equity to get his own financing. See www.cal-equity.com for more information on the PACTrust. If you can get your friend to forgoe his small current equity, you may be able to get that at the time of sale also.
Glenn